Bright!Tax US Expat Tax Blog

What Americans Living in Costa Rica Need to Know in 2025

Lush coastline and mountain views in Uvita, capturing the tropical lifestyle enjoyed by Americans living in Costa Rica.

If you’ve ever daydreamed about swapping rush hour traffic for toucans and monkeys, you’re not alone. Americans living in Costa Rica are discovering that the country’s famous pura vida philosophy isn’t just a slogan—it’s a lifestyle. Think year-round sunshine, beaches on both coasts, misty rainforests, and a daily pace that moves about as fast as […]

IRS Form 8965: How to Claim a Health Coverage Exemption

Mature woman working on her laptop at home, reviewing healthcare coverage exemptions that may require Form 8965.

Not long ago, going without health insurance didn’t just mean taking a risk—it also meant paying the IRS. Under the Affordable Care Act (ACA), taxpayers without full-year coverage faced the “shared responsibility payment,” unless they qualified for an exemption. That’s where Form 8965 came in. Filing the form allowed taxpayers to claim a health coverage […]

Combat Zone Tax Exclusion: How Military Pay Is Treated by the IRS

U.S. military service member in uniform, representing those eligible for tax benefits like the combat zone exclusion.

Recognizing the unique sacrifices made by those serving, Congress originally enacted the CZTE back in 1918 as a way to show appreciation and provide tangible support. It’s been a cornerstone of military tax benefits for decades, evolving over time to adapt to changing circumstances. The CZTE is a lifeline for many service members. With the pressures of deployment, from separation from loved ones to the inherent risks of the job, having a tax break offers some ease when it comes to financial burdens.